The Albanese government is proposing a new digital competition regime for big tech to protect consumers, and bolster innovation and competition.
A handful of global tech giants dominate how we pay for things, what we download, and how our data is used. Existing competition rules are no longer effective in addressing their control over key services like search engines, app stores, and social media.
The Albanese government is proposing a new regime that would impose upfront rules on large digital platforms to address issues encountered by Australian consumers and businesses when using digital platforms.
The laws would give the minister the power to designate platforms or services and impose service‑specific obligations, with penalties of up to $50 million, or 30 per cent of turnover, for failure to comply.
The government is proposing the first two services to be investigated for designation under the regime to be app stores and ad tech, and is seeking views on whether social media should also be prioritised.
Currently, app store platforms owned by Google and Apple can preference their own apps in search results making it difficult for consumers to compare products. They can also require businesses to use their payment systems, increasing prices for businesses and consumers.
Similarly, the vast majority of digital ad tech services in Australia are facilitated by Google, driving up prices for advertisers, and reducing profits for publishers who display ads.
The paper seeks stakeholder views on the proposed approach and key elements of the regime, including:
- the general framework and scope of covered services
- the priority services for designation
- the designation process to ensure the regime is appropriately targeted
- potential obligations that would apply to designated platforms, and
- proposed enforcement and compliance mechanisms.
The proposed regime follows the introduction of similar regimes in the European Union, United Kingdom and Japan. The European Commission estimates the EU laws will deliver AUD $21.4 billion in annual benefits for consumers.
The proposed regime forms part of the government's broader reforms to keep pace with innovations in the digital space.
It complements the new scams prevention framework, implementation of privacy reforms, the passing of digital ID laws, and ongoing work related to artificial intelligence.
Stakeholders are requested to provide their feedback by 14 February 2025. Further information regarding the consultation process is available on the Treasury website.
The release of the proposal paper delivers a key part of the Government's response to the Australian Competition and Consumer Commission's recommendations in its September 2022 Digital Platform Services Inquiry interim report.
